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Decision-making with data

Decision-making with data - Microsoft Excel Tutorial

From the course: Financial Forecasting with Analytics Essential Training

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Decision-making with data

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- [Instructor] At the end of the day, nobody's doing a financial forecast just for fun. You want to take the information that's in that financial forecast and make decisions based on it. Let's look at an example. I'm in the 0203 begin Excel file. So we have here is a relatively simple forecast for a firm based on a growth rate over time. And we've got one year of actuals for the year 2021. And then we've got five years of projections based on that year of actuals, and based on various assumptions we've made. Now we can go through and examine how the firm is going to do based on the income statement. What we see is the firm's profit in 2021 is very healthy, but going forward, there's a much lower level of profitability, largely as a result of increased operational expenses. We can then go through and review the balance sheet, including the asset section and the liability section. What we'd probably do next though, is…

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